To see or not to see – that is the question many local homebuyers struggle with.
If you’ve been in the market, you’ve probably heard this before when inquiring about a listing: “It’s already in escrow.”
What? It just came on the market! And the listing still shows as “Active.”
The HiCentral MLS (multiple listing service) Board of the Honolulu Board of Realtors is working on eliminating confusion for homebuyers by approving language it hopes is more consumer-friendly.
Starting next year, there still will be two escrow categories but they will change to:
>> “In Escrow, Showing.” This will replace what is currently “Active Continue to Show,” or “ACS.”
>> “In Escrow, No Showing.” This will replace “Pending” listings.
Currently, when a property goes into escrow, local brokers have up to 15 days to change the status of the listing from “Active” to “Active Continue to Show,” which can be loosely translated to “We accepted a contract and still may be showing and accepting offers for backup, but not really.”
When a listing agent feels more comfortable with the transaction or the buyer, he or she may change it to “Pending,” which generally means, “This deal is almost done. Don’t even bother asking for a showing.” This often happens after the inspection period is completed.
Confusing? Sure is. Just think of it this way:
Active: Green light. Go!
Active Continue to Show (ACS): Yellow Light. Late, but there’s a chance you might make it if buyer drops out.
Pending: Red Light.
Whether a property is truly available or not can be frustrating for homebuyers and agents, especially in a competitive marketplace where buyers are having to compete, pay over asking and jump on new listings.
In August, the median days on market for single-family homes on Oahu was 16 days. Condominiums on the island spent just 15 days on the market. That means most properties are selling very quickly.
To add to the confusion, some brokers choose not to change the status at all when a property goes into escrow and keep the status as “Active” as long as possible. Some brokers delay changing the status during the initial inspection period, which generally ranges from 10 to 15 days.
Agents may hold off so they can continue marketing the property and bring in backup buyers. The other benefit of keeping it “Active,” is that if the buyer falls out of escrow, there’s no change in status, eliminating questions like, “Why did the buyer drop out?”
Another significant proposed change next year is that the status will need to be changed within four days of accepting a contract instead of 15 days. “This ensures more accurate listing data for MLS subscribers, clients and consumers,” the HBR said.
The changes were prompted by HBR member concerns and were discussed in an April 2016 broker roundtable. Some brokers were concerned the public’s misunderstanding of the ACS and Pending statuses could lead to mistrust of Realtors and the industry.
The changes, the first in years, are still subject to revision of rules and approval of local and national boards.
Until then, what can homebuyers do to find out if a home is available or not? Communicate and work closely with your Realtor and have them find out for you.
Jaymes Song is a top-producing agent with Better Homes and Gardens Real Estate Advantage Realty in Kahala. He can be reached at 228-3332 or JaymesS@BetterHawaii.com.
